Finishing & Screen Printing
Pitney Bowes Discusses Benefits of Diversification to Analysts and Investors
Thursday 11. September 2008 - Pitney Bowes Inc. (NYSE:PBI) told an audience of financial analysts and institutional investors today that its diversification strategies have brought significant benefits to both customers and investors. The company also provided fresh perspectives on growth plans for its major lines of business worldwide.
In his remarks, President and CEO Murray Martin noted that the company has changed in several significant ways in recent years, citing especially a geographic expansion that has nearly tripled international revenues since 2000, and an expansion of products and services beyond Pitney Bowess core mailing business that has enabled a much richer suite of offerings to customers.
“Our systematic expansion beyond our historic niche of mail evidencing enables us to meet more of the customers end-to-end needs,” Martin said. “This keeps the customer connected on topics that matter to them and helps Pitney Bowes build longer-term relationships.”
Martin noted that the addition of several new and rapidly-growing lines of business through acquisition has reduced mail and related hardware to just 54% of total annual revenues, down from 75% just seven years ago. “Our focus of delivering value has evolved from office equipment to mail, from mail to mailstream, and now from mailstream to connections with customers around what matters in the mailstream,” Martin said.
Chief Financial Officer Mike Monahan provided a detailed review of the companys operating units and their long-term potential for revenue and profitability. Taken together, Monahan said, the company is positioned to deliver a total return to shareholders of 11-13% per year. This estimate assumes an organic revenue growth rate of 3-5%, improved operating profit margins, continued share repurchases, and a dividend yield of approximately 3%, which is close to Pitney Bowess long-term historical average.
In addition to the presentations from Martin and Monahan, the company provided demonstrations of many of the new technologies and services it offers. These included location intelligence software that assists marketers in a range of industries make more informed decisions; new systems that add customized marketing messages to bills and statements; and services that help companies take advantage of the rich trove of information provided by the U.S. Postal Services Intelligent Mail barcode.